Two employees have been sacked and one has resigned over an investigation into fraud at Hounslow Homes, which has now been handed over to police.

Hounslow Council announced yesterday that an independent internal inquiry into allegations against staff at its housing arm had been completed, with the findings being passed to Hounslow Police.

Details of the fraud have not been made public as it is the subject of an ongoing criminal investigation, but sources have said hundreds of thousands of pounds of taxpayers' money are believed to have been misspent and senior workers were implicated.

Councillor Steve Curran, the council's cabinet member for housing, yesterday revealed police had confirmed they would be carrying out their own investigation based on the findings of Hounslow Homes' own independent inquiry.